The German giant owns numerous brands, including Audi and Porsche, but its various units had all been making their own efforts on self driving tech.

Last year, VW consolidated some of those programs into one subsidiary, but the many brands were still using assorted different systems to develop software.

Now they will all be hooked up to Microsoft's cloud.

That will also help VW tackle one off.

Tesla's big perceived advantage is the ability to do regular updates.

Software developed in the cloud will now be beamed straight into cars, allowing them to develop new functions over time.

That means vehicles can hit the road with only limited self driving ability, but then grow mawr autonomous as the years pass.